News story about innovations by UK commercial radio stations to offer 'visual radio' and music downloads in order to combat listener migration to internet and mobile content, written by Grant Goddard in August 2006 for The Radio Magazine.

1. NEWS: COMMERCIAL RADIO
OFFERS 'VISUAL RADIO' AND
MUSIC DOWNLOADS TO
COMBAT LISTENER MIGRATION
TO INTERNET AND MOBILES
by
GRANT GODDARD
www.grantgoddard.co.uk
August 2006

2. Visual radio and music downloads are some of the new initiatives that
commercial radio is introducing to combat competition for listeners from
internet and mobile phone audio content.
'Virgin FM' in London and 'GWR FM' in Bristol have launched ‘visual radio’ for
listeners that use Nokia phones on the O2 network, providing them with text
and information about the songs played and station contests, as well as links
to music downloads and ringtones.
James Cridland, Virgin Radio digital media director, said: "Virgin Radio has
continually led the radio industry with technological advances, and visual radio
is the latest in the long line of firsts. Visual radio is the perfect complement to
enhance the listening experience, adding the permanency of a visual medium
to the immediacy of radio." The cost to the user is around £3 for 10 hours
listening.
On the issue of digital initiatives, Simon Nelson, controller of BBC Radio &
Music Interactive, said: "If we don't change quite radically as an industry, we
will die. It's imperative that we have a digital transition for radio – a transition
across multiple platforms. Radio is the most flexible of all mediums and has the
potential to exploit what is going on in technology."
He said he was disappointed that commercial radio had not yet embraced new
opportunities for fear that listeners might switch off. Asked about BBC plans for
a personalised internet radio service, Nelson replied: "It is not a new product
as such. It is a project that's bringing together lots of the stuff that Radio &
Music Interactive are working on at the moment across all new platforms."
The commercial radio sector has reacted more slowly to developments on the
internet and in mobile phones. Adam Findlay, 'Radio Forth' managing director,
admitted: “Until recently, we hadn’t had to think about it. Previously, the
competition [for Radio Forth] was from 'Real Radio' and the BBC. Now it's also
companies like myspace.com. That's a real shift. Listeners are looking for
more from their radio stations. They want us to be radio stations, but they
expect more. They expect us to be a point of access to get information and
downloads. The word 'radio' is becoming more ambiguous. Lots of people are
listening not on a radio, but on the internet or their mobile phone. In 10 to 20
years, [people may not be listening] using the radio. It may be on things that
aren't even invented yet."
Mark Beilby, an analyst at Dresdner Kleinwort, said that Radio Forth owner
EMAP plc had already introduced some cross-media innovations for mobile
phones users: "I don't think EMAP is doing enough. They have fantastic
brands and content ... but they haven't effectively moved that online. It's a
problem for traditional media owners. They were expecting users to migrate
online. Traditional media companies are finding it difficult to create online mass
communities. Readers of 'Kerrang!' go to myspace.com to chat. Why couldn't
Kerrang! do that? There's more that could be done."
News: Commercial Radio Offers 'Visual Radio' And Music Downloads To Combat Listener Migration To Internet And
Mobiles page 2
©2006 Grant Goddard

3. News: Commercial Radio Offers 'Visual Radio' And Music Downloads To Combat Listener Migration To Internet And
Mobiles page 3
©2006 Grant Goddard
As an example of a lost opportunity, Radio Forth’s Findlay said: “We don’t want
someone listening to the likes of Sandi Thom on our breakfast show and then
downloading it from somewhere else, which currently happens. I want us to get
that business.”
EMAP is in the early stages of a plan to offer downloads linked to all its radio
stations. Its competitor, Chrysalis plc, has already signed a deal with UBC
Media plc that will enable 'Heart FM' listeners to download songs to their
mobile phone and PC that they hear on the station. However, the service’s
£1.25 price per download compares unfavourably with iTunes’ £0.79, leading
'PC Answers' magazine to comment: "This is twice as much as iTunes. Some
people will pay this, but we can’t see many stumping up this much. When
you’ve heard it on the radio, just go online and buy it cheaper somewhere
else."
[First published in 'The Radio Magazine' as 'Visual Radio Leads Digital Initiatives', #749, 16 August 2006]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk